Why Blue Apron Soared Over 44% Today



Blue Apron Holdings

Today, the New York–based meal kit delivery service Blue Apron Holdings (APRN) surged over 44% after it made a highly optimistic announcement. Let’s take a closer look.

Article continues below advertisement

The optimism

Today, Blue Apron updated investors about its highly optimistic 2019 outlook. In its press release, the company said that it “plans to reaffirm confidence in achieving profitability on an adjusted EBITDA basis both in the first quarter of 2019 and for full year 2019 as it actively pursues the appropriate strategies to create value for its stakeholders.”

Also, it said that, on January 31, 2019, during its fourth-quarter earnings event, the company is likely to update investors on its recent strategic initiatives. It will also provide an update on its strategic partnership with Jet. After partnering with Jet, Blue Apron plans to bring same-day and next-day meal delivery to New York City.

The company added that it would soon make an announcement related to its “upcoming product and platform innovations,” too. These updates boosted investors’ confidence in the company and drove its stock over 44% higher today.

Blue Apron is a fairly small company by market cap. As of January 15, it has a market cap of about $290.6 million.

In 2018, APRN stock fell 74.7% while the S&P 500 Index (SPY) and NASDAQ Composite Index (QQQ) registered 6.2% and 3.9% losses, respectively.


More From Market Realist